Petronas is Malaysia’s state-owned oil and gas company with natural gas projects in Malaysia and internationally.
The company is expanding its business both through the entire supply chain and internationally. In August 2011, Petronas acquired a stake in GMR Energy Singapore (GMIRE), which developed an 800 MW combined cycle gas turbines (CCGT) power plant in Jurong Island in Singapore. Domestic production of natural gas by the company is mainly offshore. The company made two new offshore oil and gas discoveries in 2011. Surprisingly Petronas has also developed a regasification terminal in Melaka in Peninsula, Malaysia for imports of natural gas.
Internationally Petronas has several pipeline and LNG projects. The company has also been awarded exploration blocks in Mozambique. Key projects in the pipeline includes in Argentina, Australia, Indonesia and Thailand and LNG regasification facilities in Europe. The LNG market is a major growth sector for the company. The company’s LNG complex in Bintulu, Sarawak was once the world’s largest LNG facility with a capacity of around 23 million tonnes per annum. It is Petronas’ only LNG facility in Malaysia and is comprised of three LNG plants owned and operated by of Petronas’ joint venture companies – Malaysia LNG Sdn Bhd, MLNG Dua Sdn Bhd and MLNG Tiga Sdn Bhd.
LNG produced at Petronas’ facilities is supplied to China, Japan, South Korea and Taiwan through long-term contracts. It is also supplied to Belgium, India, South Korea, Spain, Turkey and the USA through Asean LNG Trading Company (ALTCO) via spot and swap LNG cargo contracts. Petronas only started supplying China in 2009 through a 25-year sale and purchase agreement (SPA) with Shanghai LNG signed in 2006. This contract was for up to 3.03 million tonnes of LNG per year.
In 2011 Petronas entered the shale gas sector through its subsidiary Petronas International Corporation (PICL), which formed a strategic agreement with Progress Energy Resources to develop the Altares, Lily and Kahta shale gas assets in British Columbia, Canada. As part of the agreement, PICL has a 50% stake in the three areas for CAD 1.07 billion. Progress Energy operates the sites.